This paper analyses the demand and supply factors relating to the evolution of loans to Italian households for home purchase or consumption purposes between 2008 and 2021.
The analysis shows that the growth rate of mortgage credit is positively related to bank capitalization and household income inequality at provincial level. Conversely, consumer credit is positively related to the share of fees in banks’ profitability and negatively correlated with operating costs; it also has a negative correlation with household disposable income.
